The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-02-16
The BANK OF TENNESSEE
INTERVIEW ON THE DEPOSI-
TORS MEMORIAL BEFORE
The Legislature-Mr. VIM. M. Far.
ringtOn Thlaks the State Liable
for All Unpaid Claims.

1u6 memOrlAl penulDg before tDe
State Legislature from depositors OF the
Bank OF Tennessee and its branches,
is claiming large share OF public at
teution. In order to get at the merits
OF the case, an APPEAL Iepor er yes
terday sought Ond obtained an inter.
view with Mr.. VIM. NJ. Harrington,
Pre- sident Of the Peoples Insurance
Company. M. Harrington was sought
because OF his keen and we'll defiOed
insight into financial matters, and be-
cause OF his close intimacy with the
affsirs OF the Bank Of West Tennessee,
q branch Of the deiunct State institu.
ton. As will be seen by the straight
forward replies OF the gentlemen, he
takes a positive stand in favor Of the
liability Of the State.
"Have you read the memorial Of the
depositors of the Bank Of Tennessee
to the Legislature, asking payment Of
the depos is?" asked the reporter.
~ have"
"What do you think of the fairness
and justice OF the claim? ?"
Il think it as meritorious as any
claim which has bsen made against
the state within my recollection.
Then, So you seem to have so de.
cided an opinion, will You favor the
APPEAL with your reasons p
"Yes, sir; in the fist place the State
pledged its fsith and credit to its citi-
zens in behalf Of this bank-invited
them to deposit Their money with it
had entire control OF it's affairs, and
although it was a chartered bank, the
state was the only ockholder, and
the public regarded it as tart OF the
organism of the State government and
so legardiDg it gave the Bank OF Ten
ne's % the preference over other banks
OF high character"
"You cay the Stats was the entire
stakeholder please state the capital Of
the bank"
"The capital Of the Bank of Tonnes
see was $5,0C0,0O0 and this amount
was subscribed by the State under an
&C. Of the LeVis atuIe"
"Was the amount subscribed by
the State paid in full, aud if not, how
much was paid? ?"
"Bv reference to the memorial / see
that $3.50 0l8 WAS the entire amount
which the State ever paid on its sub,
scription to the stock OF the bank
and the balance, say about 81, 100000
has never been paid to this day. The
deposits of the bank and the above
So, $40, 06S were the only basis of the
banks business and prosperity, and
may here say that 1t WAS prosperous
bank, as the State received in divi-
dends from 1889 up TO the time the
bank was ordered South by the State,
over s5,000,00O."
"Do you regard The State of Tennes.
see in relation to it's stock to this bank
as you would an individual stock
holder in private corporstiouP"
1T seems 80 to me"
"Then how can the Safe 10 good
conscience be expected to pay more
than its stock ?"
"Ihe STATE has notpaid its subscrip
tion in full. II 80 that would per
haps be ali that the creditor could ex-
pect. AS you have seen from my
former answers, the State failed to
pay nearly 81 400. 1000 OF its subscrip-
ton, and 1 understand it is we'll set
tied principle of law that the stock.
holder is bound to contribute the
capital which he has agreed 10 pro.
vide whenever needed TO discharge
the corpo ate obligations, and If he
chooses to carry on business with
borrowed money, instead of the prom.
Used capital, he cannot escape the
original liability"
"Do you remember where this doc.
trine has ever been prac iced in Ten
nessee?
eyes; and l think it is the uniform
law and custom. l recollect ia the
case OF the Bank OF West Tennessee
Ia private stock bask), located in Mem
phis, the stockholder was required to
make good his subscribed stock even
aft r tie cel tificates had been issued
provided the respective calls had NOT
been paid ia gold snd silver or its
equivalent; and it seems to bs emf.
nently proper, for the creditor must
be paid before the psrtner-or, in
other words, be just before he is gen
erous. The capital stock is a trust
fund for the payment of all the debts
Ct the corporation; and the stockhold-
ers have no rights until all the other
creditors are satisfied"
"As you have had considerable ex
perience in the banking business,
W Ii bs glad to know il deposits are
sought after and desired by banks?'
Every much, sir; tits out of depos.
its that banks make their profits The
expense OF banking business would
be too great in managing alone its
own capital. Each Individual stock
holder had better manage bis own
money without expense. Deposits
may be called the auxiliary capital o.
the bank on which intert ct, as rule
is not paid, but out Of which large
profits are realized"
"You have said in one of your
answers that you regarded the claim
of the depositors as meritorious az any
made within your knowledge. Now
why 90 you Ssy 30
Because the present claimants are
the identical ones, or their ancestors
who CoEfided their money TO the safe
keeping Of the Bank OF the State over
twenty-five years ego. They are
mostly old men and women with
wasted fortunes, whose children have
grown up, in a great many cases
without the advantages of education
aud deprived of the comforts which
money alone gives.
The bonds OF the State and thu
notes of the bank, were constantly
charging hands at the market value
while the depcsitors claim stands IL
the name OF the original owner"
"Whst kind of settlement do yor
think the Teuislatufa ahould make n